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coinpedia 2025-04-09 05:47:45

Bitcoin Price May be at Risk as Institutions Halt BTC Acquisitions—Should You be Worried?

The post Bitcoin Price May be at Risk as Institutions Halt BTC Acquisitions—Should You be Worried? appeared first on Coinpedia Fintech News The very first Bitcoin acquisition of MicroStrategy back in September 2020 triggered a strong Bitcoin bull run, which surged high, marking a new ATH of $64,000. This was the first time that the institutional interest in the token received massive support from the bulls. Since then, the company has been constantly acquiring Bitcoin, which has now reached over 500,000. With this, MicroStrategy has become one of the giant whales, and its position could have a significant impact on the BTC price rally. The last time MicroStrategy acquired 22,048 Bitcoin was at an average price of $86,969 and it holds over 528,000 BTC. The company had acquired BTC when the price was close to $100K, and now that the price has dropped below $80,000, Micheal Saylor has not yet released any new data on acquisition. Moreover, he has not even stated that the company has not sold any BTC during the sell-off as he did before. This raises significant concerns about the upcoming price action and questions regarding why Microstrategy is not purchasing more Bitcoin. Why This Should be a Matter of Concern Micheal Saylor, the former CEO of MicroStrategy, keeps on buying Bitcoin no matter what the price is. It worked perfectly fine in the times when the markets were booming, but now, when the liquidity is tightening again and volatility is rising, more acquisitions may turn the system fragile. After Trump’s Liberation Day, the markets collapsed, and the BTC price plunged hard below $74,500. With the imposition of additional tariffs on China, the trade war has again begun as the BTC price rose above $80,000 but has dropped again to close to $75,000. If the price drops close to Saylor’s average price of around $67,000, he may need to add collateral or liquidate. The recent MicroStrategy’s official filings to the SEC disclose the possibility of liquidating BTC if the price drops below the collateral thresholds. Will This Drag the Bitcoin (BTC) Price Lower? The Federal Reserve held an emergency meeting regarding the interest rates but has released no public statement. Trump wants a 2% rate cut, but that’s not happening before the next scheduled FOMC meeting in May. Due to this, the uncertainty over the global markets as well as the crypto markets may persist, which could negatively impact the BTC price rally. The BTC price continues to trade within a descending parallel channel and dropped below the average bands and the crucial support at $76,763. While the technicals flashed mixed signals, the chart patterns suggest the bullish strength is fading slowly. This hints towards the possibility of entering the support zone between $73,971 and $72,590 in the coming days. If the price fails to trigger a rebound and a sustained upswing, a plunge below $70,000 could be imminent.

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